Euphoria and hard reality

Print edition : June 13, 2014

In Gujarat, Narendra Modi is known to have a penchant for taking on large volumes of debt to finance measures that reward select capitalists with tax concessions. Here, Chief Minister Modi with Adani Group chairman and CEO Gautam Adani during a visit to a power plant in Mundra SEZ in Gujarat on December 5, 2009. Photo: PTI

Modi with Tata Group chairman Ratan Tata rolling out the the first Tata Nano from the plant in Sanand, Gujarat, in June 2010. Photo: AP

Prime Minister Manmohan Singh with Planning Commission Deputy Chairman Montek Singh Ahluwalia and Home Minister P. Chidambaram at a National Development Council Meeting in New Delhi on October 22, 2011. Modi inherits a highly inflationary and battered economy from the UPA. Photo: Rajeev Bhatt

The global slowdown has affected India's industrial growth, and the Index of Industrial Production stood at a negative 0.1 per cent in 2013-14 when compared with the previous year. Here, a file photograph showing workers at a Panasonic factory that manufactures air conditioners at Jhajjar in Haryana. Photo: SAJJAD HUSSAIN/AFP

Modi has persuaded people that his “development” magic can deliver what others do not even dare to promise. But is he ready to reverse a number of “reform” measures that have contributed to the inflationary tendency and risk capital flight and corporate backlash?
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